Shares of Tata Consultancy Services (TCS) fell for the second straight day today after the largest minority shareholder in Tata Group said on Tuesday it wanted to separate interests from the autos-to-steel conglomerate.
Shapoorji Pallonji Group announced its separation plans from Tata Group on September 22. Since then TCS share has lost 7.61% in last two sessions. The stock touched an intraday low of Rs 2302.5 falling up to 6.67% today.
The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. However, the share has gained 14% in one year and risen 7.87% since the beginning of this year.
Later, the IT share closed 5.50% or Rs 135 lower at Rs 2,331 on BSE. Total 1.89 lakh shares of the firm changed hands amounting to turnover of Rs 44.57 crore.
IT stocks joined the global sell-off today with the BSE IT index slumping 889.22 points to 19,095 against previous close of 19,984.
On September 22, Shapoorji Pallonji Group had said: "Mutual co-existence of both groups at Tata Sons would be infeasible... and separation from the Tata group is necessary". Shapoorji Pallonji group had 50.6 per cent stake in Sterling & Wilson and 72.6 per cent in Forbes, as of June 30.
The Mistry family owns 18.37 per cent in Tata Sons and is its largest minority shareholder. It is expected that the proceeds that Shapoorji Pallonji Group receives after making an exit from the Tata Group could be used to repay debt of Sterling & Wilson Solar.
Meanwhile, after five continuous sessions of losses, Sensex lost further ground and settled 1,114.82 points or 2.96 per cent down at 36,553.60. Nifty too lost 326.30 points or 2.93 per cent to close at 10,805.55.
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